0001193125-25-253570
SEC filingAlcoa improved sequentially on higher aluminum prices and Saudi JV gain, offset by Kwinana closure charges.
Alcoa reported net income attributable to Alcoa Corporation of $232 million in Q3 2025, compared to $164 million in Q2 2025, a favorable change of $68 million. The sequential improvement was primarily driven by a $786 million gain on sale of the Saudi Arabia joint venture and a $267 million mark-to-market gain on Ma'aden shares, partially offset by $885 million in restructuring charges, mostly for the permanent closure of the Kwinana alumina refinery. Revenue decreased slightly to $2,995 million from $3,018 million, as higher aluminum average realized prices (up $231/ton sequentially to $3,374/ton) were offset by lower alumina prices and lower aluminum shipments. Cost of goods sold as a percentage of sales increased 2% due to tariffs, asset retirement obligation charges, and unfavorable currency, partly mitigated by higher aluminum prices and lower production costs. Diluted EPS was $0.88 versus $0.62 in the prior quarter.
The Alumina segment reported total sales of $1,428 million (third-party $954 million), down from $1,518 million sequentially, driven by lower volumes and price from bauxite offtake agreements and lower average realized alumina price. Segment Adjusted EBITDA fell sharply to $67 million from $139 million, largely due to $42 million in increased asset retirement obligations at Poços de Caldas and lower bauxite revenue. Production increased 4% on reduced maintenance. The Aluminum segment outperformed with total sales of $2,045 million (third-party $2,040 million), up from $1,961 million, benefiting from a 58% sequential increase in the Midwest premium and higher LME prices. Segment Adjusted EBITDA surged to $307 million from $97 million as higher realized prices and favorable raw material costs more than offset $50 million in Section 232 tariffs. Aluminum production rose 1% from the San Ciprián and Lista smelter restarts.
For Q4 2025, the Alumina segment expects a benefit from the absence of asset retirement obligation charges, higher shipments, and lower production costs. The Aluminum segment anticipates increased tariff costs on higher U.S. imports from Canada, higher costs at San Ciprián due to restart inefficiencies, and unfavorable energy impacts from lower Brazil hydro-electric pricing, partially offset by higher shipments. Full-year 2025 production and shipment guidance remains unchanged: Alumina production of 9.5-9.7 million metric tons and shipments of 13.1-13.3 million metric tons; Aluminum production of 2.3-2.5 million metric tons and shipments of 2.5-2.6 million metric tons. Management emphasized continued focus on operational stability, portfolio optimization, and engagement on U.S. trade policy.